Rancho Solano (RSPS), with its new international focus and class ratios of 7:1 continues to be a highly ranked private school in the state of Arizona and was ranked as the third best private school in the state of Arizona with its overall student population of over 1,000 (azcentral.com). However, the July 8, 2014, recommendation by Adam McLaren, the analyst at Moody Analytics, states “Meritas’ rating or outlook could improve if it can organically grow its revenue/earnings through price increases and enrollment growth, and increase size and improve diversification such that debt to EBITDA approaches 5.0 times (including Moody’s standard adjustments) and EBITDA less capex coverage of interest expense is sustained above 1.5 times.” (https://www.moodys.com/research/Moodys-rates-Meritas-2nd-lien-term-loan-Caa2-affirms-B3–PR_302960). Time will tell if the international focus was the right strategic direction for RSPS as well as what lies ahead for the K-12 private school education industry in the state of Arizona.
The board of directors at RSPS has hired you as part of a consulting team to review the situation and present your findings and recommendations. Write a paper (1,250 words) that discusses the case and submit it to your instructor at the end of Topic 2. Complete this assignment from the perspective of the hired consultants. Respond to the following questions:
- What factors operating in Rancho Solano’s general and specific/internal environment influenced the decision to close the two campuses in 2014 and consolidate resources? What is your evaluation of the decision made by Dr. Mernard and Meritas?
- What is your evaluation of the process of going about the closure? Was RSPS demonstrating social responsibility? Discuss the closure impact on three specific stakeholders.
- Determine the potential effect of the changes on organizational behavior within the closed campuses and the campuses that would remain open (at the time of the announcement). How do you think this change impacted organizational behavior within the closed campus, within the school, and among the stakeholders?
- Provide an explanation, using appropriate management theories, of how the administration could have handled the closure effectively with its stakeholders in 2014. Include one theory from each of the following: the classical approach, the human relations approach, and the modern management approach.
- With the two campuses now closed, you have been asked to suggest three plans: one long-term, one mid-term, and one short-term goal for the future direction of RSPS. Justify your decision for these goals.
- Present your concluding statement.
Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center.